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What is eInvoicing? 

EInvoicing is a government initiative designed to make the exchange of electronic invoices more efficient via your accounting software. Once the sender generates the invoice within their software, the information will be directly sent to the receiver, ready to be approved and paid for.  

EInvoicing enables better control over your invoicing by: 

  • Automatically appearing in your software to reduce the need to manually enter the invoices 
  • Using the ABN (Australian Business Number) of your trading partner as well as validating key details before the eInvoices are sent. This then removes the need to follow up the invoices that were incorrectly addressed or lost.  
  • Removing the manual entry of invoices to eliminate the time-consuming and costly errors  
  • Delivering the invoices with real-time information that can be accessed in your accounting software 
  • Limiting the fake or compromised invoices as well as other false billing scams 
  • Allowing you to seamlessly trade with other eInvoicing-enabled businesses across Australia and worldwide. 

This process can be implemented easy and efficiently. For more information about these measures ask your accounting software provider or click here. However, if you do not currently use an accounting software, there are several free and low-cost options available.  

How does Xero incorporate eInvoicing? 

EInvoicing software is similar to Xero as it allows the eInvoices to be exchanged efficiently and safely amongst the government and other businesses. Hence why we highly recommend Xero as your go to accounting software. 

Get started with eInvoicing with Xero within a few steps.  

  • Within Xero, you can register via the Peppol network by using your ABN and it’s a free service. 
  • In Xero enter your ABN, then enter your chosen customer’s ABN to ensure they are registered within the Peppol Network.
  • The eInvoices will be received automatically from the supplier which reduces the risk of misdirected emails or letters. This also means there is no need to manually enter the data into the invoice. These eInvoices can be viewed as draft bills via the Xero app or on your laptop, ready to be approved and paid for. 

For more details on how it works in Xero check out the following Xhelp guide: Register to receive eInvoices – Xero Central 

Get ready for a minimum wage increase

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In reference to the Annual Wage Review, the Fair Work Commission (FWC) have made the following announcements:

  1. As of July 1, 2022, the National Minimum Wage will increase by 5.2%, which measures to an addition of $40 per week.
  2. The minimum awards wages will increase by 4.6%, which is subject to the awards classification of $40 per week and is applied to all full-time employees with a 38-hour week schedule.

Therefore, the minimum award wages:

  • Above $869.60 per week will receive an increase of 4.6% and
  • Below $869.60 per week, will receive a $40 increase

The new National Minimum wage will be $21.38 per hour and $812.60 per week. This will take effect on the first full pay period on July 1, 2022, and onwards. For example, if your pay period repeatedly occurs every Monday, the new rates will be applied from Monday July 4, 2022, and onwards.

Depending on whether you are covered by an award, this rate increase will occur in two stages. This new rate will be applied to most awards within the first full pay period either on or after July 1, 2022. However, for some awards in tourism industries, hospitality and aviation, this increase will begin October 1, 2022.

For more information about these measures click here.

Removing the $450 monthly threshold for super guarantee eligibility

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On 11 May 2021, the Australian Government announced that the $450 monthly threshold will be removed to enhance the super guarantee coverage for eligible employees, regardless of their monthly earnings.

Provided that their employees still meet the super guarantee eligibility criteria, employers will be required to make super contributions into their eligible employee’s super fund, starting 1 July 2022.Employers will also be required to review their updated payroll and accounting systems to ensure that any super payments made after 1 July 2022 are accurately calculated into their employee’s super guarantee entitlement.

From 1 July 2022, online tools and calculators will be available to assist in implementing this change.
For more information about these measures, click here.

Affected by Floods? Discover Disaster Support for your Business!

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If you have been affected by recent floods and rainfall, a range of support is available for you and your business.  

It is encouraged that businesses follow Business Queensland on Facebook or check their website to stay up to date on available assistance. You may also contact the business hotline on 1300 654 687. 

What support can you receive? 

 

1. Small Business Disaster HUB 

The Small Business Disaster Hub website offers resources and information to businesses that help them respond and recover following a natural disaster. This can include: 

 

2. Financial Assistance

Eligible flood-affected communities are available for financial assistance. 

  • Emergency Hardship Assistance Grants are available to support those who were directly impacted by a disaster and are unable to meet their essential needs for food, clothing & accommodation. Eligible applicants can receive $180 per person up to $900 for a family of five or more. For more information visit www.qld.gov.au/community/disasters-emergencies. 
  • Essential Household Content Grants of up to $1765 for single adults and up to $5,300 for couples/ families. This is available for uninsured people. Eligible applicants may receive financial assistance towards replacing and repairing essential household contents. E.g., beds, linen, and white goods. 

Australian Government Disaster Recovery Payment is a single payment for eligible people who were adversely affected by the Southeast Queensland floods. 

Disaster Recovery Allowance is a short-term payment to help people who have lost income as a direct result of the floods in Southeast Queensland.  

 

3. Legal Aid Queensland  

The Legal Aid Natural Disaster Helpline (1300 527 700) is something that businesses can call to get help with issues they may face when a property has been damaged by a natural disaster. Legal Aid has a range of resources available to support businesses that have been impacted by flooding on leased or commercial properties.  

4. Mental Health Support 

The Queensland and Australian Governments have developed a range of mental health and wellbeing resources to help support small business owners. 

 

5. Natural Disasters Business Survey  

The Natural Disaster Business Survey was opened by the Department of Employment, Small Business, and Training, to understand the impact of rainfall and flooding on businesses in Southeast Queensland.  

This is a long-term plan designed to assist businesses. Responses received from this process are used to inform potential joint State and Federal government disaster recovery assistance for small businesses. 

 

For any further information click here.

 

 

Key Super Changes 2022

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Recently legalisation has been passed that aims to make it easier for senior Australian citizens to contribute to their superannuation.  

Head of Superannuation at TSA, Natasha Panagis said that this is welcome news for many older Australians wanting to top up their superannuation savings for retirement. 

The legislation will allow individuals aged 67 to 74 to use the three year bring-forward rules to make a non-concessional contribution to superannuation in the same way someone under the age of 67 can.  

The eligibility age for downsizer contributions has also been reduced from 65 to 60 from 1 July 2022. “The downsizer contribution rules have been a popular strategy for individuals who are 65 or over and this change will allow more people to downsize and contribute their sale proceeds to their superannuation earlier”. 

New legislation has also removed the $450 per month minimum superannuation guarantee (SG) from 1 July 2022. This change will mean many young and/or lower income and part time works will start receiving SG contributions from their employer, regardless of how much they earn per month.  

For more information about these measures, click here.  

Tax Deductibility of RAT’s

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In a recent address to the Australian Industry Group (7th February 2022), Treasurer Josh Frydenberg confirmed the federal government would look to ensure COVID-19 Rapid Antigen Tests (RAT’s) are tax-deductible.  

“Today, I’m announcing that we will ensure that COVID19 testing expenses are tax deductible for testing taken to attend a place of work, giving businesses and individuals more clarity and assurance”, the Treasurer said.  

Australians will now be able to claim a tax deduction on RAT’s that they buy as part of their work. 

“We will also ensure that fringe benefits tax (FBT) will not be incurred by employers where RATs are provided to employees for this purpose.” 

This means that Employers will also gain an exemption from fringe benefits tax for the kits as well as other coronavirus tests under draft laws to be put to Parliament within days to cut the cost of checking that workplaces are safe. 

Whilst employers have previously assumed that RAT’s have been tax-deductible, the treasurer’s statement has confirmed this as well as the exemption of fringe benefits tax.  

These updates will apply to this financial year. A small business would reduce its fringe benefits tax bill by about $20 every time a dual pack of RAT’s are bought for $20 and provided to employees, according to government estimates.  

For further detail, read more on the treasurer’s conversation here.  

 

You may also like: 

Rewarding Staff for Covid-19 Vaccine  

New Stapled Superannuation Fund Rules 

Beyond Blue – New Access to Small Business Owners  

Beyond Blue – New Access for Small Business Owners

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NewAccess is a free and confidential mental health coaching program for small business owners. This program was developed by Beyond Blue to give small business owners the support they need.  

The program uses Low-intensity Cognitive Behavioural Therapy that encourages participants to recognise the way they think, act and feel and break unhelpful thoughts.  

The program goes for 6 sessions, coaches with small business backgrounds will work with you to overcome difficult issues, providing you with practical skills to manage stress and get you back to feeling like yourself. 

Why try NewAccess?

  • It is a free and confidential mental health program, developed by Beyond Blue. 
  • It is designed to support small business owners like you, manage life pressures.
  • You will be working with a coach who will help you through tailored programs.  
  • Structured six session programs 
  • No doctor or medical certificate required 
  • It’s available via phone, video call from Monday to Friday 8am until 8pm.  

What to expect 

In your initial assessment you can expect: 

  1. Talk through your challenges 
  1. Develop a problem statement  
  1. Create a plan based on your needs 

In the remaining 5 sessions with your NewAccess Small Business Owners Coach you can expect to: 

  1. Walk through your plan  
  1. Learn practical skills 
  1. Review your progress 

About the Coaches  

All coaches of the NewAceess for small business owners’ program have a background in small businesses, giving them a relevant understanding of challenges small business owners may face.  

Coaches are trained by the CBT institute to help develop and guide participants through their tailored program.  

Coaches undertake twelve months of training, starting with a six-week intensive that moves to practical learning. 

 

You can register for the program here.

If you wish to find out more information on how the program might help you, click here. 

 

Rewarding Staff for Covid-19 Vaccine

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It is important to understand your tax and super obligations as an employer, if you have provided rewards to employees for getting the COVID-19 vaccine.  

 

Examples of incentives and rewards include: 

  • Cash payment  
  • Paid leave  
  • Transport to and from the vaccinations
  • Vouchers and gift cards  

 

If you have provided employees with cash payment, you must: 

  • Withhold tax from the payment amount under pay as you go withholding 
  • Include the payment in your employee’s salary/ wages 
  • Include the amount in your employee’s ordinary time earnings (This is to help determine super contributions by employer) 

 

If you have provided paid leave, it will be treated like any other if the leave is granted to:  

  • Get a vaccination 
  • Recover from side effects  

The payments received while on leave are treated as salary/ wages.  

 

Non-cash benefits (vouchers or gift cards) may be reportable fringe benefits. These benefits will need to be included in your tax return. These may be used for: 

  • Determining your eligibility for certain government benefits and concessions, such as certain family assistance payments and tax offsets 
  • Determining your liabilities, such as Medicare levy

 

For any further information visit the Australian Taxation Offices website here.  

You may also like some of our other blogs. 

Notice of Intention (NOI) Due Dates  

New Stapled Superannuation Fund  

How to improve wellbeing in the workplace 

 

Notice of Intention (NOI) Due Dates

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The AAT has ruled that a taxpayer was not eligible to claim tax deduction for personal superannuation contributions for 2018/19 as a result of his failure to submit an eligible notice of intent (NOI) claim within the required time limits, as required by section 290-170(1) of the ITAA 1997. 

This serves as an important reminder that individuals must provide a valid NOI to their relevant superannuation fund within the required times frames in order to prevent missing out on tax deduction.  

NOI Conditions  

Claiming a tax deduction on superannuation contributions is not as easy as you think. In order to be eligible to claim tax deductions, we have specified the important conditions which must be met. These include:  

  • The individual must be eligible to contribute to superannuation. For more information click here 
  • Eligible contributions must be received by the individual’s superannuation fund in the same financial year it is intended to be claimed.  
  • A valid ‘notice of intent’ (NOI) must be sent to trustee to claim form (Section 290-170 form) 
  • Any NOI must be received by the trustee in writing before the end of the financial year that follows the financial year in which the contribution was made.  
  • The trustee must formally acknowledge that the contributions are eligible to be claimed.  

What can make a NOI invalid? 

A notice which includes all or part of an amount that is covered by a previous notice will be considered invalid.  

It may also be considered invalid when the individual submits a notice that: 

  • The individual has split contribution with their spouse. 
  • The trustee no longer holds the contribution. 
  • They were not the member of the superannuation fund.  

How can you apply? 

There are three types of forms that can be used to apply for a valid NOI.  

An approved form is one of the following.  

  1. The Notice of intent to claim or vary a deduction for personal super contributions (NAT 71121-06.2012) paper form.  

You can download this form here.

  1. A ‘branded’ paper form provided by your superannuation fund, which specifies all the information contained in NAT 71121. 
  1. A letter stating that you wish to claim a tax deduction for your personal superannuation contributions containing the following information: 
  • First name 
  • Family name  
  • Date of birth 
  • Fund name  
  • Fund ember account number  
  • The financial year in which the contributions were made  
  • The amount covered by your notice  
  • The amount you intend to claim as a tax deduction 
  • A declaration that you are lodging the notice by the due date 
  • A statement that the information contained in your letter is true and correct
  • The date  

If you have any further questions don’t be afraid to contact us! Give us a call or book a consultation. 

You can also check out some of our other blogs: 

Director ID Implementation 

ATO Debts Worrying you? 

How small businesses can build better credibility online 

 

Filed Under: Tax

New Stapled Superannuation Fund Rules

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New stapled superannuation fund rules have been implemented from the 1st November 2020. Superannuation stapling is a new measure which was introduced to reform the superannuation system announced by the federal budget 2020/21. 

The imposed measures mean that an individual/ employees superannuation account is stapled to them when they change jobs.  This removes the need to create new superannuation accounts each time a person changes their employment.  

It is important to consider that the new rules require employers to use the “stapled super fund” details for new employees who do not choose a fund. These rules will only apply to new employees who commence after 1st November 2021.  

Typically, an employer must provide an employee with a superannuation standard choice form within 28 days of commencing work. Now, if a new employee does not choose a fund, the employer will be able to check if the employee has an existing stapled fund. As an employer you will be able to do this by logging into ATO online services an accessing the ’stapled superfund request service’.  

If the employee has a stapled fund, the employer will be required to contribute to that specific stapled fund. If an employer contributes funds into their default fund and not the employees stapled fund, they may be subject to the choice shortfall penalty.  

There is no need to request stapled super fund details from the ATO for any existing employees.  

Further information on employer obligations with regards to stapled super funds can be found here on the ATO’s website.  

For other important updates for small businesses, you can check out some of our other articles: